a company has two production departments and two service departments the data relati 625796
A company has two production departments and two service departments. The data relating to a kperiod are as follows.
|
Particulars |
Prod. Dept. I |
Prod. Dept. II |
Service Dept I |
Service Dept II |
|
Direct Materials |
80,000 |
40,000 |
10,000 |
20,000 |
|
Direct Wages |
95,000 |
50,000 |
20,000 |
10,000 |
|
Overheads |
80,000 |
50,000 |
30,000 |
20,000 |
|
Power requirement at normal capacity operation (Kwh) |
20,000 |
35,000 |
12,500 |
17,500 |
|
Actual power consumption (Kwh) |
13,000 |
23,000 |
10,250 |
10,000 |
The power requirement of these departments are met by a power generation plant. The said plant incurred an expenditure which is not included above, of Rs.1,21,875 out of which a sum of Rs. 84,375 was variable and the rest fixed.
After apportionment of power generation plant costs to the four departments, the service department overheads are to be redistributed on the following basis.
|
Departments |
Prod. Dept I |
Prod. Dept II |
Service Dept I |
Service Dept II |
|
Service Dept I (%) |
50 |
40 |
– |
10 |
|
Service Dpet II |
60 |
20 |
20 |
– |
You are required to,
i. Apportion the power generation plant costs to the four departments
ii. Reapportion service department cost to production departments
iii. Calculate the overhead rate per direct labor hour of production departments, given that the direct wages rates of Production Dept I, II are Rs. 5 and Rs. 4 per hour respectively.